ShengdaTech Posts 23.5% rise in 4Q revenue

Nasdaq-listed ShengdaTech Inc., a leading manufacturer of nano precipitated calcium carbonate (NPCC) and coal-based chemical products manufacturer in China, on Monday reported an increase of 23.5% for the 2007 fourth quarter revenue.

For the fourth quarter of 2007, revenue increased 23.5% year-on-year to US$28.6 million. Gross margin increased 2.7% year-on-year to 35.8%. Net income rose 26.5% year-on-year to US$7.8 million, or US$0.14 per diluted share.

ShengdaTech's record revenue for the fourth quarter of 2007 is primarily attributed to the new NPCC lines added in July 2007 reaching full capacity in November 2007, resulting in a production capacity of 130,000 metric tons. The NPCC segment contributed 48.2% of total revenue for the quarter and the chemical segment contributed the remaining 51.8% of total revenue compared to 40.5% and 59.5%, respectively, in the same period a year ago.

For the full year 2007, the revenue increased 38.6% to US$100.7 million. NPCC revenue increased 112.3% and contributed 46.4% to the total revenue. Net income increased 54.2% to US$27.0 million, or US$0.50 per diluted share.

In February 2008, the company's breakthrough of NPCC application for use in polyethylene(PE) plastic products has opened up possible market opportunities and expanded the company's overseas penetration.